Gold Range Tightens as Traders Wait on Fed
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(eToro Blog) Gold prices held close to $1,580 per ounce, buoyed by investors who are clinging to hope that the U.S. Federal Reserve Bank will see yesterday’s weaker than expected economic data points as sufficient reason to change their hard-line stance. New claims for jobless benefits surged to 386,000 last week, an increase of 34,000 and well above analysts’ forecast of 365,000. The U.S. Labor Department attributed the rise to a timing change for U.S. automobile manufacturers which typically lay off workers annually at around this time. July’s manufacturing activity also contracted in the Mid-Atlantic region, the third time in as many months; the Philadelphia Federal Reserve reported an improvement in the July reading to -12.9 from -16.6, but analysts had expected the reading to come in at -8.0.
Precious metals analysts point out that gold has been trading within a tight band over the past two months, trapped between a low of $1,530 and a high of $1,630, and needs a clearer indication from the U.S. central bank in order to break out of that range. One commodities analyst sees the strong possibility that that band could tighten in the short term, as there is very little encouragement for gold traders.
Earlier, gold was edging higher trading at $1,581.56 and sentiment on OpenBook is bullish with 76% of traders buying. OpenBook trader lala99 from Germany earned a 35.50% profit on a long position in gold; the trader has had a 15.5% allocation over the past month which has provided a 26.9% gain over the period, the second highest in the portfolio.
OpenBook trader creative12 went short and eked out a 6% gain a short while ago; the trader’s 14.6% holding in gold gained 6.7% over the last month. The trader often takes advantage of OpenBook’s CopyTrade feature to copy gold guru MIB1984’s positions; a short yesterday likewise returned 6%. Guru MIB1984 continues to improve his gains on gold; over the last month his 82.1% allocation has provided him and the traders who copy him (which number 1067) with a 9.3% gain.
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i know about this range markeet but now in future what is next turn again can it again make a new low recourd or a new high? and what its turn on monday mean high n low points?